Boston Beer Company Inc. (NYSE: SAM) has revised its full-year GAAP earnings per share (EPS) forecast, now expecting a range of $3.80 to $5.80, down from its previous estimate of $5.50 to $7.50.
The company also announced a significant update to its production agreement with Rauch North America, aimed at aligning its production capacity with future needs. The amended deal offers Boston Beer greater flexibility in production and enhanced termination rights.
As part of the revised agreement, Boston Beer will make a cash payment of $26 million to Rauch by December 23. This payment will result in a pre-tax contract settlement expense of $26 million, or $1.70 per diluted share after tax, which will be reflected in the company’s fourth-quarter 2024 results.
Despite the reduction in GAAP EPS guidance, Boston Beer has kept its non-GAAP EPS outlook unchanged, maintaining a range of $8.00 to $10.00 for the full year.
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